Andhra Bank personal loan is offered with zero foreclosure charges and competitive interest rates based on the external benchmark called the RBI repo rate. Being part of the repo linked lending rate (RLLR) regime, the transmission of rate cuts/increases is expected to be transmitted faster to personal loan borrowers of Andhra Bank. In the following sections, details of personal loans from Andhra Bank will be discussed.
Features of Andhra Bank Personal Loan
Minimal Documentation: Andhra Bank personal loan can be availed with need for minimum number of documents. Generally a proof of identity, a proof of address and a proof of income are sufficient to apply for a personal loan.
Diversity: Andhra Bank offers personal loan to cater financial needs of different groups of people, ranging from salaried individuals to self-employed applicants, professionals, LIC agents and pensioners.
Flexible Loan Tenure: You can repay the loan amount as per your convenience in up to 60 months.
Floating Rate of Interest: Andhra Bank personal loan interest rate is linked to repo rate and interest is calculated using the reducing balance method. This effectively lowers the total interest payout, which makes the Andhra personal loan offer more lucrative for borrowers.
Andhra Bank Personal Loan Interest Rates
The following are the personal loan interest rates as offered by Andhra Bank:
| Type of Personal Loan | Rate of Interest (p.a. |
| Clean Loan | 11.20% onwards |
| Consumer Durables Loan | 11.70% onwards |
| Secured Personal Loans (against KVP, NSC, LIC Policy) | 13.15% onwards |
Types of Andhra Bank Personal Loan
Andhra Bank offers 3 types of personal loans:
1. Andhra Bank Clean Loan
- What is it? – Unsecured loan offered to individuals to meet their credit requirement for personal purposes.
- Who is eligible? – Offered to salaried individuals, non-salaried individuals, pensioners and LIC agents.
- Loan Amount – Variable as per individual applicant’s profile.
| For Salaried Individuals | Loan amount after considering all deductions including EMI of the proposed loan should be at least 40% of the gross salary. |
| For Non-Salaried Individuals | Up to 2 times of average annual proven income* |
| For Pensioners (maximum loan amount of Rs. 5 lakh)
| Up to 8 times of the monthly pension. |
| For LIC Agents (maximum loan amount of Rs. 2 lakh) | l Liable to file ITR: Up to 2 times of average renewal commission for the last 3 years. l Not liable to file ITR: Up to 50% of average renewal commission as per the statement of income. |
*Calculated as average of last 3 years annual income shown in IT returns or assessment orders.
Key features:
- Loan Tenure – Loan can be paid over a maximum period of 60 months (5 years)
- Co-obligation – Requires an acceptable third party as a co-borrower.
- Collateral Security – No collateral needs to be pledged to avail this loan.
- Interest rate varies based on loan tenure and applicant type as follows:
|
Loan Tenure | Rate of Interest | |
| State and Central Government Employees, Employees of public sector undertakings with Andhra Bank salary accounts and Pensioners | Others | |
| Up to 36 months
| RLLR + 3.00% | RLLR + 3.50% |
| More than 36 months to 60 months | RLLR + 3.25% | RLLR + 4.50% |
RLLR: Repo Linked Lending Rate
2. Andhra Bank Consumer Loan
- What? – Loan offered for purchase of consumer durables and home appliances
- Who? – Any individual with repayment capacity, including salaried individuals, pensioners and others.
- Loan Amount – 75% of the cost of the article or as per the following table, whichever is lesser.
| For Salaried Individuals | Up to 10 month gross salary |
| For Non-Salaried Individuals | Up to 40% of gross annual income |
| For Pensioners | Up to 4 months’ pension |
- Loan Tenure – Up to 60 months (5 years)
- Co-obligation – Husband/ father or any third party with a regular and sufficient source of income acceptable to the bank.
- Security – Article purchased with the loan amount can be hypothecated, i.e.,can be seized if you fail to repay the loan amount.
- Collateral Security – Life insurance policy with an equivalent surrender value or shares/ NSCs/ Units of sufficient value.
- Interest rate for the consumer loan from Andhra Bank are as follows:
|
Loan Tenure | Rate of Interest | |
| State and Central Government Employees, Employees of public sector undertakings with Andhra Bank salary accounts and Pensioners | Private Employees, non-salaried class, LIC agents and others | |
| Up to 36 months
| RLLR + 4.40% | RLLR + 3.50% |
| More than 36 months to 60 months | RLLR + 5.40% + 0.25% | RLLR + 5.40% + 0.25% |
RLLR: Repo Linked Lending Rate
3. Andhra Bank Loan against NSC/KVP/LIC Policy
- What? – Secured personal loan to meet any personal credit requirement.
- Who? – Individuals with appropriate security instruments.
- Loan Amount – Up to Rs. 50,000 without a third party guarantee and above Rs. 50,000 with a third party guarantee.
- Types of Securities Accepted – National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Life insurance policies or any other security as specified by the bank.
- Restrictions – NSCs and KVPs issued by far off post offices, Indira Vikas Patra (IVP), and life insurance policies in the name of the third party are not accepted as a security to avail the loan.
- Margin – Please note that the bank maintains a margin of 25% over the value of the security (including the interest) before sanctioning the loan amount. For example, if your NSC is worth Rs. 1 lakh, the bank will maintain a margin of 25% and approve a loan up to Rs. 75,000 only.
- Loan Tenure – Up to 60 months (5 years).
- Interest rates for this Andhra Bank personal loan are as follows:
| Loan Tenure | Rate of Interest |
| Up to 36 months | RLLR + 4.95% |
| More than 36 months to 60 months | RLLR + 4.95% + 0.25% |
RLLR: Repo Linked Lending Rate
Eligibility Criteria
The following are the key eligibility criteria applicable to different types of Andhra Bank personal loan:
1. Andhra Bank Clean Loan
| Age | l Up to 75 years for pensioners l Up to 55 years for LIC agents |
| Co-obligation | l A third party acceptable to the bank. l Family pensioner or a nominee, in case of pensioners. l One of the family members or spouse and 1 LIC agent, in case of an LIC agent |
2. Andhra Bank Consumer Loan
| Who? | Any individual with repayment ability including salaried individuals, pensioners and others. |
| Co-obligation | Husband or father or any other Andhra Bank approved third party with a sufficient and regular source of income |
3. Andhra Bank Secured Loan
| Collateral | Life insurance policy/ shares/ NSCs/ Units of sufficient value |
Documents Required for Loan Application
- Duly filled Andhra Bank personal loan application form
- Photographs of the applicant and the co-applicant
- Proof of income of the applicant and the co-applicant
- Post-dated cheques (PDCs) for a minimum period of 12 months/ECS Mandate
- Bank account statement for last 6 months
Additional Documents Required for Consumer Loan
- Latest original quotation from a local dealer for consumer durables proposed to be purchased with full details of the article.
- Stamped receipt or invoice of the item purchased.
Additional Documents Required for Loan Against NSC/KVP/ LIC Policy
- Loan against NSC/KVP: Original bond along with request letter to Post Office for using the security in favour of bank.
- Loan against LIC policy: Original bond with a copy of latest receipt towards payment of premium along with request letter to LIC for assignment of the policy in favour of bank.
Fees and Other Charges
| Processing Fee | Nominal as per the guidelines in force |
| Administrative Charges | Collected at the end of every quarter as per the bank’s guidelines |
| Part Prepayment Charges | Nil* |
| Foreclosure Charges | Nil* |
*For Loan Against NSCs, KVPs and LIC Policies, prepayment charges may apply.
Andhra Bank Personal Loan EMI Calculation
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Personal Loan at Attractive Interest Rates Apply Now
Andhra Bank Customer Care
The following are the different ways to reach the customer care department of Andhra Bank:
- Toll Free Number: 1800-425-1515
- Telephone Number: 040-23234313, 23252000; Extensions: 2422, 2577
- Fax: 23232419
- E-mail ID: customerser@andhrabank.co.in
- Digital Assistant (Chatbot): You may contact Andhra Bank’s digital assistant called “ABHi” to seek an instantaneous answer to your queries.
NOTE: The customer care numbers are operational between 10:00 AM to 5:00 PM on all working days, except 2nd and 4th Saturdays.
For Complaints
The following are different ways that you can register a complaint with Andhra Bank customer care:
- SMS: Send an SMS “UPSET” to 9666606060. You will instantaneously receive an acknowledgement after sending this SMS, subsequent to which you will receive a call from the Andhra Bank Call Centre. The concerned branch/office will then take the necessary steps to resolve your complaint.
- Proforma of Complaint: Alternatively, you can fill the online complaint form and submit it to the concerned branch.
- If you are not satisfied with the branch reply, contact Andhra bank nodal officer via filling out the customer complaint form.
- If you are still not satisfied after receiving the Nodal Officer’s response, contact the Head Office of Andhra Bank at the following address:
The Assistant General Manager
Andhra Bank, Customer Service Department,
Head Office, Dr. Pattabhi Bhavan,
5-9-11, Saifabad,
Hyderabad – 500004
Phone: 040 23297899
Frequently Asked Questions (FAQs)
Q1. What is the turn-around-time for Andhra Bank personal loan disbursal?
While Andhra Bank has not specified the exact time for personal loan disbursal, the loan approval process is typically completed within 4 to 7 working days post the submission of the required documents. The actual disbursal may occur earlier or later depending on various factors such as loan amount, applicant type, loan tenure, etc.
Q2. What are the various types of Andhra Bank personal loan?
Following are the three types of personal loan offered by Andhra Bank:
- Andhra Bank Clean Loan: Unsecured loan offered to individuals to meet their personal needs.
- Andhra Bank Consumer Loan: Secured personal loan offered to individuals to purchase consumer durables and home appliances.
- Andhra Bank Loan against NSCs, KVPs and LIC Policies: Secured personal loan that uses instruments such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP) or LIC policy offered to individuals to meet their personal needs.
Q3. Does Andhra Bank offer pre-approved personal loan?
Andhra Bank may offer pre-approved loan to some of its existing customers based on their relationship with the bank and credit history.
Q4. What is RLLR?
RLLR stands for Repo Linked Lending Rate, i.e, the interest rate charged on a loan is linked to repo rate. Whenever there is an increase or decrease in repo rate, there is a similar change in the interest rate charged by bank. Hence, RLLR allows greater transparency and faster reflection of rate cuts in the interest rates.
Q5. How can I calculate my EMI for Andhra Bank personal loan?
You can calculate Andhra Bank personal loan EMI for free using Paisabazaar EMI calculator. Use the sliders to specify your loan amount, loan tenure and interest rate to know the monthly EMI payouts.
Q6. How Andhra Bank charges interest on personal loan?
Andhra Bank personal loan interest rate is floating in nature as it is based on repo rate, an external benchmark. Moreover, the interest is charged on reducing balance which significantly reduces the interest component.
Q7. Can I prepay my Andhra Bank personal loan?
Yes, you can prepay Andhra Bank personal loan before the designated due date. This not only helps you to save on the interest component, but also reduces your outstanding debt. Currently Andhra Bank’s personal loan prepayment charges are nil.
Q8. How can I pay Andhra Bank personal loan EMIs?
You can pay Andhra Bank personal loan EMIs at any of the bank branches. Alternatively, you can give standing instructions to deduct the same form your savings account.
Q9. What are the foreclosure charges for Andhra Bank personal loan?
While the foreclosure charges for Andhra Bank Clean Loan and Consumer Loan are nil, nominal charges may apply for foreclosure of loan against NSCs, KVPs and LIC policies.
Q10. Can a pensioner avail Andhra Bank personal loan?
Yes, a pensioner can avail Andhra Bank personal loan, provided they meet the personal loan eligibility criteria as set by Andhra Bank.
